South African bank, First National Bank (FNB), announced on Tuesday 10 October 2017 that the company’s “Bank Your Change” feature has allowed FNB customers to save over R1 billion in the past 14 months from small change when shopping.
‘Bank Your Change’, a free feature which can be activated by all FNB customers with a transactional bank account, enables them to save a portion of their change every time they swipe their bank cards to purchase goods or services.
For example, when a customer buys goods worth R52.50 using their FNB cheque or debit card, the purchase amount is rounded up to the nearest R1.00, with the total amount R53.00 debited to their bank account. The difference of 50c is automatically transferred and saved in their Savings Account, which is offered alongside a customer’s transactional account at no additional cost. Customers have the ability to choose the denomination to which the transaction will round up to; namely, to the nearest R1; R5; R10; R20 or R50.
Ryan Prozesky, CEO of Value Banking Solutions at FNB says, being able to develop products and services that add value to our customers and can help solve for some of the critical problems they face, such as adopting a savings culture, is at the centre of our innovations.
“Bank Your Change has gained prominence amongst our customers by conveniently and effortlessly enabling them to save money, without even thinking about it,” adds Prozesky.
This innovative tool replaces the traditional piggy bank saving model where consumers had to physically drop in change and take it to the bank once it is full.
“The exceptional growth of the ‘Bank Your Change’ offering is aligned to cash transaction trends we are seeing in the market. In the past year alone, there has been a strong movement towards digital platforms, with cards swipes increasing by 12%,” says Prozesky.
Apart from the ease and convenience, there is also a healthy reward for saving more using ‘Bank Your Change’. FNB transactional account holders with a Savings Account will earn a rate of up to 6.3% interest per annum on all the money saved in their Savings Account.
In addition to the change which is banked in the Savings Account, customers can also make additional transfers into this account free of charge and withdraw it at anytime, without having to give the bank notice.